Technical Note On Managing Inventories Periodic Review System Case Study Solution & Analysis
NASCAR (National Association for Stock Automobile Vehicle Racing) is a company performing series of Stock Vehicle racing in United States and acting as an approving body for driving the rules for Stock Car Racing. 2) Stock Cars And Truck Racing by NASCAR is the second largest spectator sport, with highest number of sponsors. 1) The other sources of earnings for Technical Note On Managing Inventories Periodic Review System Case Study Help consists of; 10% of the overall earnings from television rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed corporate culture with the non-interventionist technique. Nevertheless this non collaborative approach brings tensions in the sport. The structure of Car of Tomorrow by Technical Note On Managing Inventories Periodic Review System Case Study Help, with an intention of safety for the drivers, brought numerous tensions amongst the stakeholders of the sport.
The communication audit, performed in 2010, exposed that in spite of the reality that the service highly rely on the communications in between its stakeholders, there was no recognizable service interaction strategy. (
The audit explained various lacking of NASCAR in terms of lack of internal combination, lack of fan management technique and lack of digital and social media of marketing. The company has intricate community with independent tracks, motorists and teams. This structure with closed business culture bring different obstacles in speeding up a modification. Other partners in community includes the media networks i.e. tv and radio, and business online marketers.
Technical Note On Managing Inventories Periodic Review System Case Study Analysis viewers was extremely devoted to the sport and the brands associated with the NASCAR, making it appealing for sponsors and business online marketers.
The business is presently dealing with the issue of declining rates of attendance at racing tracks and rates of tv audiences. This can put a considerable effect on its incomes from sponsors, media rights, and from other sources of income.
Although the business was quite successful till 2005 with its conventional marketing techniques, but right after 2005 the business starts facing different issues including decrease of its fan base. A number of external along with internal aspects are accountable for the decrease. Internal factors include; inadequate investment in social networks and other digital medias of.
Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and create generational commitment. The family system in America was changing resulting in reduction of impact of married male fan base over their children. Along with it perceptions about automobile was also altering with viewing car an automobile to reach at point B from point A, instead of as an enjoyable project. Other obstacles for Technical Note On Managing Inventories Periodic Review System Case Study Analysis consists of the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, and so on. These all difficulties were tending the business to modify its marketing techniques.
NASCAR core competencies includes it has rights of dictating guidelines as sanctioning body. Rules and policies concerning expert stock automobile racing are determined by NASCAR like if any team with needed abilities and resources can enter into races by following rules and regulations dictated by NASCAR. All the events of NASCAR are sponsored by corporates because of greatest brand loyalty of fans towards brands advertised by Technical Note On Managing Inventories Periodic Review System Case Study Solution.
Weaknesses in SWOT Analysis are considered as external aspects. Weak points consists of the elements that stops company to perform at needed level of efficiency. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They usually utilized to form guidelines and other required processes without intervention of others which leads to bad collaboration. For example NASCAR develops Cars and truck of Tomorrow without cooperation so result is that chauffeurs did not like that principle. As this is racing sport so covering of sports by media is likewise hard. It was also found that NASCAR had no reliable technique for company communication. They don't know how to deal with problem if it took place off track. Ineffective organisation communication results in that they do not have clear direction for their long term objectives. They don't understand that where they want to see this sport in future.
NASCAR typically utilized to rely on conventional media sources like local paper for promotion of its sports. NASCAR also came to know from these standard media outlets that sport was hard to cover. When sports fans were asked relating to popular celebrities and stars then NASCAR motorist was not found even in top twenty reactions.
Economic down turn was experienced in late 2000 which can be hazard for NASCAR due to the fact that if there is economic down turn then individuals would be having less return on financial investment. Economic down turn likewise results in boost fuel prices which also impacted NASCAR. Now if NASCAR make significant investments in new segments which are based on new consumers then it might face unfavorable comments from its core fan base.
Porter's Five Forces Analysis
It is important to comprehend market in which company is working because NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are used to identify profitability, intensity and appearance of NASCAR service.
This force indicates ability of rivals. Teams usually represents sponsors in NASCAR and the medium of marketing is drivers. It can be stated that drivers and race cars are rivals. If they got better chance in terms of prizes and television direct exposure, these chauffeurs can go against Technical Note On Managing Inventories Periodic Review System Case Study Analysis. If audiences delight in other race cars and chauffeurs more than NASCAR then viewers can move to those other intriguing cars and trucks and chauffeurs. NASCAR might be having risk from its two direct rivals that is Formula 1 and Moto GP. They need to produce competitive benefits for motorists so they do not shift to other competitors.
The supplier power shows the number of suppliers are offered in industry and what is the cost connected with provider if company shifts from one supplier to another. In this market there is supply monopoly since drivers with required resources and skills are limited.
In the case of NASCAR customers are its audiences. Viewers can switch to other competitors quickly since audiences will having low switching cost.
Danger of Replacement
Substitutes are referred as alternatives. The substitutes in this case can be other home entertainment means like audiences can shift to other sports. There are large variety of alternatives are offered in this scenario which suggests that hazard of substitute is high.
Hazard of New Entry
In the case of NASCAR risk of brand-new entry is low. They need to construct automobiles and racing tracks and also requires to pay significant quantity to drivers for switching.
As NASCAR is working in numerous markets so it requires to face various regulations. It is likewise kept in mind that NASCAR has actually dealt with increased scrutiny relating to regulatory. Every government has different top priority so NASCAR has actually to be prepared for it as concern can be shifted to other sector.
Economic aspects consists of tax rate, currency exchange rate, economic performance of that particular company, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be impacted. NASCAR can take advantage of abilities of workers to produce new chances and enhance existing opportunities.
Each has different social worths and norms. It helps in comprehending regarding society and choice of clients.
In this case of NASCAR it can be noted that business are greatly spending for research and development. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Legal plays an essential function in every nation due to the fact that every country has various legal terms. Technical Note On Managing Inventories Periodic Review System Case Study Analysis requires to be make certain that they secure their legal rights in every county so any business does not harm to its legal rights.
Ecological elements are also crucial for every business. NASCAR needs to make sure that its automobiles are not producing pollution more than appropriate level.
7 P's of Marketing
The products of Technical Note On Managing Inventories Periodic Review System Case Study Analysis in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Prices method of NASCAR for its race occasions tickets is based upon the place and importance of the racing occasions. In addition to race events tickets, NASCAR likewise charge various service fees to its stakeholders and makes earnings. It charged approving charges of $1-2 million per race on average in 2005.
Promotional strategy of Technical Note On Managing Inventories Periodic Review System Case Study Analysis is highly based upon its fan base. A strong fan base share its fandom with others and increase the variety of audiences for NASCAR races. Nevertheless, the business is not completely trusted its fan base for its promo and promote through regional radio stations too. The business has actually also adopted the retailing media of promotion, in which the company sells products with its logo design.
NASCAR have its racing tracks in different cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in the majority of the cities in United States to comprehend nationwide appeal.
Nestle individuals method is consisted of offering better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an important aspect of Technical Note On Managing Inventories Periodic Review System Case Study Solution A marketing technique as its events are the source of entertainment for crowd. Its individuals method consists of efforts to supply better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under individuals technique of NASCAR.
Several organisation procedures are required to conduct racing events in an efficient way. These processes include; correct schedule of time, arrangement for spectators, selling tickets, arrangement of area for sponsors, managing logistics and so on. These all processes contribute I developing NASCAR image, enhancing viewers experience and increasing fan base.
Crucial physical proofs for the NASCAR consists of the presence of its racing tracks, stock automobiles and racing occasions. In addition to it, its retailing brand names consisting of t-shirts, caps, goodies and so on, likewise act as a physical proof for NASCAR.
Item Life Cycle Assessment.
The racing events by NASCAR was introduced on June 19, 1949. At the first phase competitors for NASCAR was low, as the rivals drove the cars similar to the vehicles driven by normal people.
After performing its first race effectively the business moved towards building its own tracks. The very first Technical Note On Managing Inventories Periodic Review System Case Study Help based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the development of racing tracks the company moved towards broadcasting its races on tv in 1979. The very first occasion transmitted on tv was flag-to-flag coverage of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a local Sport popular company into one with worldwide fan base. He initiated a new period of profitable sponsorships and television agreements for NASCAR.
The maturity period for NASCAR began with the efforts of William France Jr., with the business having vast array of earnings sources. The company has about 500 sponsors with broadcasting its occasions in about 150 countries. The business has large number of tracks in most of the cities of United States.
The major causes of decrease include the monetary crisis of 2008, which increased the expense of getting here at tracks for viewers due to increasing fuel rates, and the shifting of its fan base towards other sports.
The market division of Technical Note On Managing Inventories Periodic Review System Case Study Help can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Technical Note On Managing Inventories Periodic Review System Case Solution is based upon the geographical presence of its tracks in different states and cities in United States, and the television broadcasting of its events in numerous countries. The company has 23 tracks in about 20 states of America and has tv broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical segmentation supplies the company local along with international fan base.
The group division of Technical Note On Managing Inventories Periodic Review System Case Study Analysis is also highlydiverse based upon the gender, income and age of the consumer. To increase the market segment of its market NASCAR should modify its marketing strategies to draw in more age groups and lower its costs to enter in the market sector with a low average income.
The psychological qualities of the majority of the fans are quite similar. NASCAR has a fan base with a commitment. When in a week, NASCAR fans perceive it compulsive to buy tickets and see the races. 71% of them choose to acquire items with a NASCAR brand. They are quite extrovert and want to mingle with other fans while racing. They want quality racing with low cost at convenient place. NASCAR has actually tried to increase the quality of its racing by introducing phase racing, they also have tried to lower prices and make the occasion more convenient by presenting live racing.
Behavioural segmentation of Technical Note On Managing Inventories Periodic Review System Case Study Help is based upon the behaviour of fans in regards to watching the race survive on the tv or by entering the occasions. Presently, the fans choice is towards enjoying the race in the house on television instead of going, as the client experience at NASCAR tracks is not favourable along with pricey. This choice makes the rates for presence lower than the rates for television viewers. NASCAR needs to change the behaviour of its fan base by introducing qualitative services at its tracks.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market section has fantastic potential for NASCAR as the population was growing at a higher rate and it was anticipated to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are also one of the possible target market sector for NASCAR, as they are more connected socially than other groups. Cars and truck racing video games established by Technical Note On Managing Inventories Periodic Review System Case Study Help can be a possible source of acquiring attention of kids towards NASCAR track racing. NASCAR requires more attention towards tailoring and enhancing its digital functions to bring in the kids target market.
This big expenditure makes the section capacity for NASCAR marketing technique of increasing its fan base. The market sector thinks about NASCAR as an organization doing not have in producing a multiculturalism atmosphere. NASCAR ought to take different steps to improve the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing helps in taking decisions regarding marketing.
It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE represents political, economic, social, technical, environmental and legal and is stated above.
NASCAR is an auto racing business with having USP of high quality vehicle racing with a worldwide structure. Its sector is sports team and events. Its target audience is males in the age of 15-60 years. Company has actually closed corporate culture and having non-interventionist approach.
Collaborations includes distributors, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million every year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application.
The customer of Technical Note On Managing Inventories Periodic Review System Case Study Help are its audiences. They target customers with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and develop generational loyalty.
Teams generally represents sponsors in NASCAR and the medium of advertising is chauffeurs. These motorists can go versus NASCAR if they got much better opportunity in terms of rewards and television exposure.
1. Developing and Maintaining Facebook Page.
One of the prospective target markets sectors for NASCAR is Hispanics which is the growing population segment of U.S.A. but sadly NASCAR had been not able to bring in the this targeted sector. It ought to develop a Facebook page consisting of the details concerning the races and the places of tracks to make the customer helpful about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to gamers of other sports. Its ranks 7th in terms of star power (see Case Exhibition). The major factor behind it is that, the racers mostly play in groups and are not able to develop a key account and preserve a close contact with fans. The bad contacts with fans lead to less attraction of audiences towards the racers and a low star power. Star power is an essential factor for attracting viewers towards tracks and towards television. The star power for the motorists at NASCARA could be enhanced by developing and upgrading accounts of essential motorists by NASCARA itself. This would get rid of the requirement of requiring motorists to keep their accounts and would result in increasing fans attention towards NASCARA drivers.
3. Developing New Games and enhancing existing games for kids.
Kids invested most of their time on playing video games and using smartphones. Regrettably, kids playing NASCARA have a worst experience of playing its video games. As a result, they are less drawn in towards the sport. In order to attract these kids, NASCARA should enhance its existing racing video games by presenting customization in the cars i.e. changing colours, selection of speed, presenting group racing in the game, utilizing much better graphics connected to the racing tracks and introducing different levels in the game. All these adjustments in the current video game would offer better experience to kids.
Along with it, NASCAR should also construct brand-new games related to racing like kids racing with kids characters as motorists, animation racing with racing in between numerous animation characters with a choice of selecting the favourite cartoon character for the kids. These methods would make it possible for the business to attract among its possible target sections.
4. Introducing multiculturalism at occasions.
Technical Note On Managing Inventories Periodic Review System Case Study Solution occasions are comprised of fans with really few cultural diversity, due to cost of arrival in occasions, making it unattractive for the customers viewing sport occasions as get-togethers i.e. Generation Y consumers. As the Generation Y clients are a potential target audience for NASCAR, therefore the business should take certain procedures to attract this potential target market. It must adopt techniques to draw in the clients far from the tracks place with various culture. The method to do so could be providing special discount rates on tickets or free tickets to viewers coming from a particular range or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more pleased.
5. Improving Client Experience at Tracks.
Since on the race day audiences got disappointed, NASCAR ought to work on facilities and amenities at tracks. Due to the fact that in very same industry other business are offering better services than NASCAR, viewers have numerous expectations from Technical Note On Managing Inventories Periodic Review System Case Study Solution. IF NASCAR don't deal with this concern then its fans might shifted to its competitors. According to fans there were not appropriate centers were available as compare to other sports suppliers. So NASCAR must make certain that it supply adequate centers that includes cleaned up washrooms, comfy seating arrangement. They must also offer WIFI services and ease of access of charge card throughout that track. It must be also make sure that there suffice jumbo turns positioned at all needed locations. There must be also food stalls that supply quality food to audiences. In this way viewers will be having pleasant experience at the day of occasion. (See Appendix B).
Marketing Spending plan
Marketing budget plan made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the cost related data for the marketing strategies. It can be seen that technique 5 of enhancing consumer experience at tracks would need highest initial financial investment and expense and strategy 4 of presenting multiculturalism will need lowest initial investment with least expensive even more per year cost.
NOTE: The worths about cost are presumed on reasonable basis due the absence of facts and figures associated with cost in the event study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the internal and external factors of Technical Note On Managing Inventories Periodic Review System Case Study Help causing the decrease of tv viewership rate and presence rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long run. These strategies would cope with internal factors like bad client experience at tracks, inadequate social media marketing, incapable digital medias like games, absence of culturalisms at tracks etc., as well as with external factors like moving of fans towards other sports, demographical modifications in America and changing domesticity styles.